Press Release

Non-GAAP operating income of $18.7 million represents 25% operating
margin

Non-GAAP EPS of $0.29 exceeds the high-end of our expectations

BRIDGEWATER, N.J.--(BUSINESS WIRE)--Feb. 7, 2013--
Synchronoss
Technologies, Inc. (NASDAQ: SNCR), the mobile innovation company
that provides personal cloud solutions and software-based activation for
connected devices across the globe, today announced financial results
for the fourth quarter and full year 2012.

“The company’s strong business momentum contributed to revenue and
profitability that were above the high end of our expectations for the
fourth quarter,” said Stephen G. Waldis, Founder and Chief Executive
Officer of Synchronoss. “2012 was a transformational year for
Synchronoss. Mobile operators began to solidify their cloud strategies,
and we achieved our goal of winning cloud services engagements with
several of the largest mobile operators around the globe. In addition,
our recent acquisition of NewBay further expands our market share, our
Personal Cloud platform functionality and our customer relationships.”

Waldis added, “As we look ahead, we are very optimistic about
Synchronoss’ future as we are positioned to take advantage of certain
powerful industry drivers such as the growth in connected devices and
cloud services. We remain on track to deploy our Personal Cloud platform
with multiple major operators over the course of 2013, and we believe
Synchronoss is poised to deliver strong growth on a sustained basis as
our customers launch, scale and expand their cloud services.”

On a GAAP basis, Synchronoss reported net revenues of $73.2 million,
representing an increase of 18% compared to the fourth quarter of 2011.
Gross profit was $41.9 million and income from operations was $6.6
million in the fourth quarter of 2012. Net income applicable to common
stock was $3.4 million, leading to diluted earnings per share of $0.09,
compared to $0.21 for the fourth quarter of 2011.

On a non-GAAP basis, Synchronoss reported net revenues, which adds back
the purchase accounting adjustment related to revenues for certain
acquisitions, of $73.9 million, an increase of 19% compared to the
fourth quarter of 2011. Gross profit for the fourth quarter of 2012 was
$44.2 million, representing a gross margin of 60%. Income from
operations was $18.7 million in the fourth quarter of 2012, representing
a year-over-year increase of 18% and an operating margin of 25%. Net
income was $11.1 million in the fourth quarter of 2012, down from $13.3
million in the year ago period due to a higher tax rate in the fourth
quarter of 2012 caused by the delayed renewal of federal research and
development tax credits in the United States. Diluted earnings per share
were $0.29 for the fourth quarter of 2012, above the high-end of our
expectations and compared to $0.34 for the fourth quarter of 2011.

A reconciliation of GAAP to non-GAAP results has been provided in the
financial statement tables included in this press release. An
explanation of these measures is also included below under the heading
"Non-GAAP Financial Measures."

“We are pleased with the leverage displayed in Synchronoss’ business
model during 2012. While we invested heavily in the company’s Personal
Cloud platform and global distribution, Synchronoss delivered a record
annual non-GAAP gross margin of 60% along with 200 basis points of
non-GAAP operating margin expansion,” said Lawrence R. Irving, Chief
Financial Officer and Treasurer. “We believe there is additional,
leverage in our financial model over time as our Tier 1 carrier
customers deploy and scale our higher margin cloud platform.”

Other Fourth Quarter and Recent Business Highlights:

Business outside of the AT&T relationship accounted for approximately
$43.6 million of non-GAAP revenue, representing approximately 59% of
total revenue. Verizon Wireless remained the largest contributor to
Synchronoss’ business outside of AT&T, representing over 10% of
Synchronoss’ revenue for the quarter. Business related to AT&T
accounted for approximately $30.3 million of non-GAAP revenue,
representing the other 41% of total revenue.

During December 2012, Synchronoss acquired NewBay, a wholly owned
subsidiary of Blackberry (formerly Research in Motion), for $55.5
million in cash. NewBay’s technology assets and millions of worldwide
subscribers further establish Synchronoss as the leader in providing
cloud based mobile content services for mobile operators around the
world. NewBay also bolsters Synchronoss’ international presence,
including its relationship with several mobile operators in Europe.

Full Year 2012 Summary Financial Results

On a GAAP basis: Revenues for the full year 2012 were $273.7 million,
an increase of 19% compared to $229.1 million in the prior year. Gross
profit was $158.0 million for the full year 2012. Income from
operations was $41.5 million and net income was $27.1 million, leading
to full year 2012 diluted earnings per share of $0.69.

On a Non-GAAP basis: Revenues for the full year 2012 were $275.2
million, an increase of 19% compared to $230.5 million in the prior
year. Gross profit for the full year 2012 was $164.3 million,
representing a gross margin of 60%. Income from operations was $69.8
million for the full year 2012 and represented an operating margin of
25%. Net income was $43.2 million for the full year 2012, leading to
diluted earnings per share of $1.10, an increase from $0.98 in the
prior year.

Conference Call Details

In conjunction with this announcement, Synchronoss will host a
conference call on Thursday, February 7, 2013, at 4:30 p.m. (ET) to
discuss the company's financial results. To access this call, dial
866-700-7101 (domestic) or 617-213-8837 (international). The pass code
for the call is 44264651. Additionally, a live web cast of the
conference call will be available on the “Investor Relations” page on
the company’s web site www.synchronoss.com.

Following the conference call, a replay will be available at
888-286-8010 (domestic) or 617-801-6888 (international). The replay pass
code is 55365997. An archived web cast of this conference call will also
be available on the “Investor Relations” page of the company’s web site, www.synchronoss.com.

Non-GAAP Financial Measures

Synchronoss has provided in this release selected financial information
that has not been prepared in accordance with GAAP. This information
includes historical non-GAAP revenues, gross profit, operating income,
net income, effective tax rate, earnings per share and cash flows from
operating activities. Synchronoss uses these non-GAAP financial measures
internally in analyzing its financial results and believes they are
useful to investors, as a supplement to GAAP measures, in evaluating
Synchronoss’ ongoing operational performance. Synchronoss believes that
the use of these non-GAAP financial measures provides an additional tool
for investors to use in evaluating ongoing operating results and trends,
and in comparing its financial results with other companies in
Synchronoss’ industry, many of which present similar non-GAAP financial
measures to investors. As noted, the non-GAAP financial results
discussed above add back the deferred revenue write-down associated with
acquisitions, fair value stock-based compensation expense,
acquisition-related costs, changes in the contingent consideration
obligation, deferred compensation expense related to earn outs and
amortization of intangibles associated with acquisitions.

Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. Investors are encouraged to review the reconciliation of
these non-GAAP measures to their most directly comparable GAAP financial
measures as detailed above. As previously mentioned, a reconciliation of
GAAP to non-GAAP results has been provided in the financial statement
tables included in this press release.

About Synchronoss Technologies, Inc.

Synchronoss Technologies (NASDAQ: SNCR) is the mobile innovation company
that provides personal cloud solutions and software-based activation for
connected devices across the globe. The company’s proven and scalable
technology solutions allow customers to connect, synchronize and
activate connected devices and services that empower enterprises and
consumers to live in a connected world. For more information visit us at:

This document may include certain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to, plans,
objectives, expectations and intentions and other statements contained
in this press release that are not historical facts and statements
identified by words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates," “outlook” or words of similar
meanings. These statements are based on our current beliefs or
expectations and are inherently subject to various risks and
uncertainties, including those set forth under the caption "Risk
Factors" in Synchronoss’ Annual Report on Form 10-K for the year ended
December 31, 2011 and other documents filed with the U.S. Securities and
Exchange Commission. Actual results may differ materially from these
expectations due to changes in global political, economic, business,
competitive, market and regulatory factors. Synchronoss does not
undertake any obligation to update any forward-looking statements
contained in this document as a result of new information, future events
or otherwise.

The Synchronoss logo, Synchronoss, ConvergenceNow, InterconnectNow,
ConvergenceNow Plus+ and SmartMobility are trademarks of Synchronoss
Technologies, Inc. All other trademarks are property of their respective
owners.

SYNCHRONOSS TECHNOLOGIES, INC.

BALANCE SHEETS

(in thousands, except per share data)

(Unaudited)

December 31,

2012

2011

ASSETS

Current assets:

Cash and cash equivalents

$

36,028

$

69,430

Marketable securities

20,188

51,504

Accounts receivable, net of allowance for doubtful accounts of
$258 and $356 at December 31, 2012 and 2011, respectively